New Annuity Lets RIAs Manage Investments

They can wrap client brokerage accounts, traditional IRAs and Roth IRAs with the lifetime income protection that it offers.

By Rethinking65

An unusual annuity launched today allows registered investment advisors to directly manage clients’ existing mutual funds and ETFs as part of the product.

RetireOne of San Francisco and Midland National Life Insurance Co. of West Des Moines, Iowa, announced the new, zero-commission contingent deferred annuity. Called Constance, it offers a stand-alone living benefit that unbundles the annuity’s insurance component from the underlying investments. That means RIAs can wrap client brokerage accounts, traditional IRAs and Roth IRAs with the lifetime income protection that Constance offers.

Constance can include some ETFs and mutual funds from BlackRock, Dimensional Fund Advisors, Franklin Templeton, Vanguard, and other leading managers. Many more are slated to be vetted and approved, says a press release.

“This is a game changer for increasing advisors’ adoption of protected retirement income solutions,” RetireOne CEO David Stone said in the release. “Through our partnership with Midland National, Constance improves advisor and client experiences, lowers internal costs, and makes the income guarantees ‘portable’ from custodian to custodian.”

Constance is offered exclusively on RetireOne’s platform. RetireOne’s technology consolidates data from insurance companies and custodians for ongoing servicing and administration.

The annuity lets advisors help clients remain in control of their assets and tax treatment by keeping covered assets with the custodian in either qualified or non-qualified accounts, RetireOne said. Unlike funding a traditional annuity by selling out of existing positions, advisors can cover a client’s existing mutual fund or ETF investments with Constance without a capital-gain tax event, it added.

Advisors who would like to learn more about Constance can call (877) 575-2742 or visit retireone.com.

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